Last checked at 30 Dec 2014 15:07
Praetorian Resources Limited
("Praetorian Resources" or the "Company")
Interim Results
Praetorian Resources (AIM: PRAE; PRSS) announces its results for the six months ended 30 September 2014.
An extract from the interim report (the "Interims") appears below and the full version can be viewed on the Company's website at www.praetorianresources.com. Hard copies of the Interims are available by request to info@praetorianresources.com.
For further information, please contact:-
Praetorian Resources Limited | Robert King, Chairman | |
+44 (0) 1481 732 153
| ||
Grant Thornton UK LLP (Nominated Adviser) | Colin Aaronson/ Jamie Barklem | |
+44 (0) 20 7383 5100
| ||
R & H Fund Services (Guernsey) Limited | Gareth Smith | |
+44 (0) 1481 734182 |
Chairman's Statement
At the period end our net assets attributable to ordinary shareholders was £6,674,205 equating to a Net Asset Value per Share of 15 pence.
In my last two statements I highlighted the exceptionally challenging headwinds facing the junior resources markets. Shareholders will by now have witnessed along with your board yet further deterioration in the sector making it, in my opinion, one of the most severe bear markets in its history.
The fall out in some of the bulk metals has now been followed by the collapse in the oil price which has decimated sentiment in these markets forcing down share values to historically low levels. A capital drought for financing is aggravating matters further.
As we move into the New Year the global economic and geo political situation looks ever more volatile and the only certainty seems to remain uncertainty. It is likely that contrarian investors will start bargain hunting, which may well prove to be astute from a timing perspective.
Your board continue to monitor matters closely and would like to think that the worst is now in fact behind us and that a significant improvement in the commodities and natural resources climate takes hold in the coming year.
Robert King - Chairman
30 December 2014
Interim Condensed Consolidated Statement of Changes in Equity
For the period 1 April 2014 to 30 September 2014
01/04/2014 to 30/09/2014 | 01/04/2013 to 30/09/2013 | ||
Unaudited | Unaudited | ||
Income | £ | £ | |
Net capital loss on financial assets as fair value through profit | |||
or loss | (2,781,616) | (5,135,749) | |
Foreign currency gain | 2,210 | - | |
Investment income | 2,189 | - | |
Net investment losses | (2,777,217) | (5,135,749) | |
Expenses | |||
Directors' fees | (20,000) | (30,000) | |
Directors' expenses | (292) | (5,719) | |
Administration fees | (34,244) | (37,144) | |
Support services administration fees | (84,614) | (82,791) | |
Audit fees | (5,167) | (10,417) | |
Custodian fees | (3,203) | (4,636) | |
Broker fees | (14,913) | (12,747) | |
Consultancy fees | (170,000) | (75,420) | |
Registrar fees | (917) | (6,124) | |
Other expenses | (39,392) | (49,243) | |
Total expenses | (372,742) | (314,241) | |
Operating loss | (3,149,959) | (5,449,990) | |
Finance income | 121 | 565 | |
Finance costs | (102,170) | (9,969) | |
Loss for the financial period | (3,217,008) | (5,459,394) | |
Other comprehensive income for the period | - | - | |
Total comprehensive expense for the period | (3,217,008) | (5,459,394) | |
Basic and diluted deficit per share (pence) | (6.80) | (11.10) |
(Based on weighted average number of Ordinary shares of 47,329,173 (2013: 49,176,334)).
All activities derive from continuing operations.
All income is attributable to the holders of the Ordinary Shares of the Company.
Interim Condensed Consolidated Statement of Financial Position
As at 30 September 2014
30/09/2014 | 31/03/2014 | ||
Unaudited | Audited | ||
£ | £ | ||
ASSETS | |||
Non-Current Assets | |||
Investments at fair value through profit or loss | 7,745,601 | 10,813,632 | |
Total non-current assets | 7,745,601 | 10,813,632 | |
Current Assets | |||
Trade and other receivables | 18,379 | 60,433 | |
Cash and cash equivalents | 526,436 | 1,044,814 | |
Total current assets | 544,815 | 1,105,247 | |
Total Assets | 8,290,416 | 11,918,879 | |
EQUITY AND LIABILITIES | |||
Equity | |||
Shares issued | 24,036,140 | 24,677,936 | |
Warrants issued | 72,454 | 72,454 | |
Treasury shares | - | (310,655) | |
Retained earnings | (17,469,389) | (14,217,381) | |
Total Equity | 6,639,205 | 10,222,354 | |
Liabilities | |||
Non-Current Liabilities | |||
Loan payable | 1,583,182 | 1,481,012 | |
Total non-current liabilities | 1,583,182 | 1,481,012 | |
Current Liabilities | |||
Trade and other payables | 68,029 | 215,513 | |
Total current liabilities | 68,029 | 215,513 | |
Total equity and liabilities | 8,290,416 | 11,918,879 | |
Net asset value per Ordinary Share (excluding | |||
shares held in Treasury) | 0.15 | 0.21 |
The interim condensed consolidated financial statements on pages 5 to 18 of the Interims were approved and authorised for issue by the Board of Directors on 30 December 2014 and were signed on its behalf by:
Robert King
Director
Interim Condensed Consolidated Statement of Changes in Equity
For the period 1 April 2014 to 30 September 2014
Share Capital | Warrants | Treasury Shares | Retained Earnings | Total Equity | |
£ | £ | £ | £ | £ | |
At 1 April 2014 | 24,677,936 | 72,454 | (310,655) | (14,217,381) | 10,222,354 |
Total comprehensive expense for the period | - | - | - | (3,252,008) | (3,252,008) |
24,677,936 | 72,454 | (310,655) | (17,469,389) | 6,970,346 | |
Transactions with owners | |||||
Shares issued | 297,500 | - | 310,655 | - | 608,155 |
Share redeemed | (939,296) | - | - | (939,296) | |
Total transactions with owners | (641,796) | - | 310,655 | - | (331,141) |
At 30 September 2014 | 24,036,140 | 72,454 | - | (17,469,389) | 6,639,205 |
At 1 April 2013 | 24,677,901 | - | - | (8,549,735) | 16,128,166 |
Total comprehensive expense for the period | - | - | - | (5,459,394) | (5,459,394) |
24,677,901 | - | - | (14,009,129) | 10,668,772 | |
Transactions with owners | |||||
Shares issued | 35 | - | - | - | 35 |
Share buybacks | - | - | (310,000) | - | (310,000) |
Share transaction costs | - | - | (655) | - | (655) |
Total transactions with owners | 35 | - | (310,655) | - | (310,620) |
At 30 September 2013 | 24,677,936 | - | (310,655) | (14,009,129) | 10,358,152 |
Interim Condensed Consolidated Statement of Cash Flows
For the period 1 April 2014 to 30 September 2014
| 01/04/2014 to 30/09/2014 | 01/04/2013 to 30/09/2013 | |
£ | £ | ||
Cash flows from operating activities | |||
Purchase of investments | (236,346) | (739,847) | |
Proceeds from sale of investments | 116,334 | 565,080 | |
Interest received | 121 | 565 | |
Operating expenses paid | (67,346) | (252,002) | |
Net cash outflow from operating activities | (187,237) | (426,204) | |
Cash flows from financing activities | |||
Proceeds from issue of shares | 608,155 | 35 | |
Payment of redemption of shares | (939,296) | - | |
Share buybacks | - | (310,000) | |
Share transaction costs | - | (655) | |
Net cash outflow from financing activities | (331,141) | (310,620) | |
Net change in cash and cash equivalents | (518,378) | (736,824) | |
Cash and cash equivalents at beginning of period | 1,044,814 | 826,052 | |
Cash and cash equivalents at end of period | 526,436 | 89,228 |
1. FINANCIAL INFORMATION
The financial information set out above does not constitute the Company's Interim accounts for the period ended 30 September 2014, but is derived from those accounts.
The unaudited condensed consolidated financial statements of the Group ("Interim Statements") have been prepared in accordance with International Accounting Standard ("IAS") 34: Interim Financial Reporting. The Interim Statements do not include all the information and disclosures required in annual financial statements, and should be read in conjunction with the Company's Annual Report and Consolidated Financial Statements for the period ended 31 March 2014 ("2014 Annual Report"), which were prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union and applicable Guernsey law and are available at
www.praetorianresources.com.
2. INVESTMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS
For the period ended 30 September 2014 - Unaudited | Level 1 | Level 2 | Level 3 | Total |
£ | £ | £ | £ | |
Opening Cost | 21,235,890 | 108,679 | 339,499 | 21,684,068 |
Additions at cost - cash | 126,854 | 109,492 | - | 236,346 |
Disposals proceeds | (379,085) | (143,676) | - | (522,761) |
Net realised gain on disposal of investments | 81,337 | 34,997 | - | 116,334 |
Closing portfolio cost | 21,064,996 | 109,492 | 339,499 | 21,513,987 |
Net unrealised (loss)/gain on investments | (13,757,611) | 519 | (11,294) | (13,768,386) |
Closing valuation | 7,307,385 | 110,011 | 328,205 | 7,745,601 |
Net unrealised (loss)/gain on investments | (2,488,133) | (418,867) | 9,050 | (2,897,950) |
Net realised gain on disposal of investments | 81,337 | 34,997 | - | 116,334 |
Net capital (loss)/gain on fair value of financial assets designated at fair value through profit or loss | (2,406,796) | (383,870) | 9,050 | (2,781,616) |
Investment income | 2,189 | - | - | 2,189 |
Total (losses)/gains on Financial Assets at fair value through profit or loss | (2,404,607) | (383,870) | 9,050 | (2,779,427) |
For the year ended 31 March 2014 - Audited | Level 1 | Level 2 | Level 3 | Total |
£ | £ | £ | £ | |
Opening Cost | 22,132,351 | - | 1,314,499 | 23,446,850 |
Additions at cost | 1,171,166 | 108,679 | - | 1,279,845 |
Disposals proceeds | (834,395) | - | (23,940) | (858,335) |
Net realised loss on disposal of investments | (1,233,232) | - | (951,060) | (2,184,292) |
Closing portfolio cost | 21,235,890 | 108,679 | 339,499 | 21,684,068 |
Net unrealised (loss)/gain on investments | (11,335,073) | 484,981 | (20,344) | (10,870,436) |
Closing valuation | 9,900,817 | 593,660 | 319,155 | 10,813,632 |
Net unrealised (loss)/gain on investments | (4,126,293) | 484,981 | 891,883 | (2,749,429) |
Net realised loss on disposal of investments | (1,233,232) | - | (951,060) | (2,184,292) |
Net capital (loss)/gain on fair value of financial assets designated at fair value through profit or loss | (5,359,525) | 484,981 | (59,177) | (4,933,721) |
Investment income | 1,179 | - | - | 1,179 |
Total (losses)/gains on Financial Assets at fair value through profit or loss | (5,358,346) | 484,981 | (59,177) | (4,932,542) |
The current strategy of the Group, as discussed in the 2013 Annual Report, is to concentrate the portfolio on six key positions where the Group can support and assist in management. As at the period end these key positions constitute 98% (31 March 2014: 83%) of the NAV of the Group.
3. NET ASSET VALUE PER ORDINARY SHARE
£ | ||
Net assets | 6,639,205 | |
Ordinary shares in issue | 45,635,936 | |
Net asset value per share (pence) | 0.15 |
4. EVENTS AFTER THE FINANCIAL REPORTING DATE
On 1 November 2014, R&H Fund Services (Guernsey) Limited were appointed as Administrator. Legis Fund Services Limited resigned on 31 October 2014.
On 1 November 2014, Mr Brian O'Mahoney resigned as director of Praetorian Resources (GP) Limited. Mr John Butler Gareth Smith, a Director of R&H Fund Services (Guernsey) Limited was appointed as Director of Praetorian Resources (GP) Limited on 1 November 2014.
It is noted that Kaare Foy, a Director of the Company has retired as a Director of Polar Star Mining, an entity into which the Company is currently invested.